You must develop an environment of open communication with your team. The size of your team does not matter. If your team consists of more than one person, then you must have effective communication to be an effective team.
Nothing destroys communication quite like having a jerk on your team. Really, the only thing worse than having a jerk for a team member is having a jerk for a team leader. Either way, an argumentative, quarrelsome individual will naturally shut down communication from most of your other team members. In this environment, company issues will not be fully discussed, if they are brought up at all.
Always be mindful of the chemistry of your team. If someone is a jerk, you must deal with it. If you are the jerk, you must change. Because no matter how brilliant the jerk is, eventually they will have to mellow or leave.